Digital marketing is arguably one of the most important marketing phenomenons of the 21st century and here are 4 reasons why it is important for any business:
. Intensifying competition.
Digital marketing is “the application of the Internet and related digital technologies in conjunction with traditional communication to achieve marketing objectives”(Chaffey, 2012) . Institute of Direct Marketing say that it can involves taking both online and offline digital technologies to create channels to market (Chaffey, 2009)
Due to increased online competition, the internet has become a prerequisite to almost any business . Because of this high competition, companies have a real need to stand out and do so by using digital marketing correctly. Just like how marketing stimuli are used to get customers into the shop digital marketing stimuli are designed to get customers onto a website.
Internets implications for modern business, include a real time market space, 24 hour operation and increased communication between brands and their customers and also communication between customers alone (Arnott and Bridgewater, 2002).
While the internet is the channel most closely associated with digital marketing other channels are often effective as well. As a whole digital marketing provides an easy way of communicating with customers. This communication will generate data and through monitoring and analysis marketeers can then develop strategies to satisfy customers. (Arnott and Bridgewater, 2002).
Furthermore this has allowed smaller companies to utilize resources with often basic free digital marketing strategies and yet also allowed bigger companies with more flexible budgets to administer their resources to gain competitive advantage.
2. Take advantage of exploding data volumes.
“Big data is a relative term describing a situation where the volume, velocity and variety of data exceed an organisation’s storage or compute capacity for accurate and timely decision making.” (Troester,2012)
This shows the amount of data in the space that is available to be manipulated, this data can regard anything from amount of likes, buzz words or what’s trending, expressible in multiple variables such as country region, ethnicity, etc.
For instance if data shows you that 5% of your website viewers are making purchasing decisions you can increase traffic strategies to get better sales or use strategic email marketing campaigns to target the 95% of customers who do not make a purchase decision. Marketing research shows that over 65% of consumers are inclined to make a purchase in association with a well planned email campaign.
Increased revenue streaming opportunities
Other websites are very good at generating traffic onto the website and so presents a great opportunity for other websites to advertise their products and services.(Banners and advertisements, ppc)
Consumers nowadays use search engines to locate or contact people for a services or good. Marketers optimize websites correctly using data from analytics showing keywords, tags title or links, which help search engines identify what your site is all about, and how it relates to what the user is looking for. A strong organic search alone can drive traffic through to your website directly from targeted audience.
90% of consumer transactions are started on one device and finished on another. (Neil Mohan, Google) Circulation of mobile digital appliances surpass that of pc’s, and technology improvements of these devices is rapidly increasing and becoming more similar to the capabilities of a pc.
4. Social Media Marketing
Plenty of sites have great content but the struggle is to get people to see that content, Companies such as Microsoft stay customer involved by using twitter as a platform to know and respond fast to customer feedback. LinkedIn and WordPress use Affiliate marketing which is a more developed form of digital marketing which works on mutual benefits from WordPress users being encouraged to use LinkedIn and ViceVersa.
Social media marketing is also a great platform to spread the word and advertise products, these days the opinion of regular people consumers is more and more regarded higher than marketing claims.
By Joseph Chimkupete
D.Chaffey & F. Ellis (2012). Digital Marketing: strategy, implementation and practice. Harlow: Pearson Education
Chaffey, D. (2014). 10 reasons you need a digital marketing strategy. [Online] Available from: http://www.smartinsights.com/digital-marketing-strategy/digital-strategy-development/10-reasons-for-digital-marketing-strategy/ [Accessed: 23 January 2015]
Troester, M. (2012), Big Data Meets Big Data Analytics [Online]Available from: http://www.sas.com/content/dam/SAS/en_us/doc/whitepaper1/big-data-meets-big-data-analytics-105777.pdf %5BAccessed: 23 January 2015]
Chaffey, D. (2009) Internet Marketing: Strategy, Implementation and Practice. Pearsons Education